By Chris Giles, Economics Editor
Wednesday, April 04, 2007
UK corporate profitability rose to its historically highest level at the end of last year as manufacturing and service sector companies benefited from strong sales growth combined with lower energy prices and subdued wage pressures.
Economists said soaring profitability in the fourth quarter augured well for business investment, underpinning the Bank of England's strong growth forecast for this year.
The net rate of return on capital rose to double-digit levels even in manufacturing.
|
